Siemens Energy AG

Q3 performance: strong profitability momentum (guidance unchanged) - Company reported order intake and revenue up, with revenue of EUR 17.9bn in Q3. - Profitability materially improved again: profit before special items ~3x vs prior year; margin before special items (SI) 14.2% in Q3. - Guidance range not changed; CEO said they are confident, expecting some seasonality/quarterly fluctuation but upper-range margin remains the target for the full year.

Wind/Semiconductor? (Siemens Gamesa) & cash burn remains the big overhang, but progress toward breakeven - Wind for first time in 14–15 quarters turned positive (operating/profitability milestone). - Gamesa guidance: breakeven in 2026 reaffirmed; CEO said after first 3 quarters the total loss is a small double-digit loss, but more work remains to make it highly profitable. - Cash flow still weak: Gamesa free cash flow remained highly negative (minus EUR 518m in Q3, minus EUR 1.7bn over 9 months). - Why cash still burning: ongoing/project timing effects and significant capex in Q4 (management framed Q4 capex as a reason cash flow looks weaker despite strong YTD free cash flow).

Middle East demand: strong, resilient energy investments; CEO cites ~30% impact in MW terms - CEO estimated Middle East accounts for ~30% (by gigawatts) of large projects in the overall quarter (rough estimate). - Countries mentioned: Saudi Arabia, UAE, Oman, Qatar; narrative is not diminished by conflict—instead, there’s discussion about “resilient energy structure”. - Opportunity: long-cycle projects likely to support orders. - Risk: geopolitical/regulatory uncertainty, but CEO emphasized continuing market momentum.